Physical asset corresponding to a digital asset

ABSTRACT

A physical asset corresponding to a digital asset is provided. The physical asset includes one or more components manufactured in accordance with one or more parameters for customizing the physical asset based on information associated with the digital asset. The physical asset also includes a tag associated with the physical asset, wherein the tag includes information comprising a uniform resource locater (URL) and encrypted information, wherein the encrypted information corresponds to a cryptographic token on a distributed ledger and information about the physical asset.

CROSS REFERENCE TO RELATED APPLICATIONS

This application claims priority to U.S. provisional application Ser.No. 63/159,763, filed on Mar. 11, 2021. The entire contents of the aboveidentified application is incorporated herein by reference as if fullyset forth herein.

TECHNICAL FIELD

Disclosed are embodiments related to digital assets, physical assets,and methods and apparatuses for generating, purchasing, redeeming,rendering, and authenticating such assets. More particularly, thisdisclosure relates to methods and apparatuses for redeeming a digitalasset for a physical asset, for generating a digital asset for purchaseby a user, for purchasing a digital asset in a digital environment by auser, for rendering a digital asset and for authenticating a physicalasset, and to a physical asset corresponding to a digital asset.

BACKGROUND

A new breed of entrepreneur has emerged. Creators of allpersuasions—entertainers, athletes, artists, gamers—have massiveaudiences who crave authentic interaction and engagement with thecreators they adore. Historically, these creators have had limitedoptions for engaging and monetizing their fanbases, and their fans havehad limited options to support and signal their affiliation with thecreators.

Cryptographic (“Crypto”) tokens, such as non-fungible tokens (“NFTs”),have emerged to help fill the gap. Crypto assets help align incentivesamongst creators and their fans. Through NFTs, creators can sell goods,experiences, creations, moments, and artwork directly to fans. Creatorscan also earn royalties on secondary sales of their work, taking awaythe sting of selling their work “early” only to see it appreciatesignificantly in subsequent sales.

For example, if an artist sold a particular piece for $250, and twoyears later the piece sold for $2,500,000 the artist typically would notrealize any of the price appreciation. Through the enforcement ofroyalties on a resold NFT, creators can lock in permanent participationin the appreciation of their work like never before in history.

Fans who are early supporters of a particular project or creative workget to participate in the upside as the project, product, or artworkgains in popularity, and as a result, gains in value. The “true fans”will see the most upside as they are most likely to have supportedearly.

One industry that, like many others, that is not immune from thisphenomenon is the footwear industry and, more specifically, the sneakerindustry. Sneaker collaborations experience this phenomenon, and only ahandful of the most prominent creators can fully participate in theupside of a collaboration if the sneaker is a big success. Even then,for the most part, a creator will only benefit from the primary sale ofthe sneaker. If a sneaker collaboration starts selling for a premium thesecond it hits the market, the collaborator typically does not realizeany of the upside of the secondary sale.

Sneakers have evolved from a purely utilitarian tool to help athletesperform better into a cultural phenomenon. Sneakers are at once adominant fashion sector, an increasingly valuable collectors' assetclass, and most importantly, a medium for self-expression.

Meanwhile, more components of the human experience are shifting todigital, with online environments allowing people to expand theircircles and connect with others around the globe who share theirinterests. Over time, these online worlds become increasinglyintertwined resulting in a “world” of connected digital environments.This interconnected digital world is often referred to as the“metaverse,” and is only possible if its underlying digital assets canbe provably scarce, have knowledge of each other, can interact with eachother, have a shared history, and the “citizens” of the global worldhave a shared source of truth which serializes ownership of said assets.NFTs and the blockchains on which they exist represent the idealinfrastructure for the metaverse, unlocking a whole new world ofpossibilities.

SUMMARY

NFTs represent an exciting evolution in asset ownership in digitalenvironments, but equally exciting is their potential to bridge thedigital and the physical. Moreover, NFTs transform the value propositionfor creators. Instead of enlisting a publisher, gallery, or record labelto monetize creative works, artists can carve out a larger slice of thetotal pie. This paradigm shift also breaks down the traditionalstratification between consumers and creators.

Some embodiments disclosed herein allow users to own the “same” asset inboth digital and physical environments. In some embodiments,blockchain-based smart contracts will record ownership of both thedigital and physical asset and create a “bridge” for use in both thedigital and physical worlds. In an exemplary embodiment, a userpurchases a digital pair of sneakers. The user receives a 3D filedepicting the sneakers and is able to use the sneakers in digitalenvironments, such as, for example, the Sims. In some embodiments,owning the digital asset may entitle the user to a physical pair ofsneakers that the user can wear in real life. In this way, the userwould have a seamless experience “wearing” their sneakers in real lifeas well as in the digital environment. In some embodiments, both thedigital and physical assets may be unified and represented byblockchain-based smart contracts.

Advantageously, in some embodiments, each blockchain-based token/assetmay contain identifying information about the asset (for example, adigital sneaker), such as when it was created, the designer, priorowners, prior sale prices, current sale price, the digital design file,digital integrations, ownership structure, existence of an associatedphysical asset, unique attributes, and other information.

In some embodiments, a digital design file is inextricably tied to ablockchain address. A digital design is created. A blockchain basedtoken is created to represent ownership of the digital design. Thedigital design may be represented by a unique digital fingerprint orcryptographic hash. The blockchain token is now representative of thedigital design. The blockchain token cannot be transferred without alsotransferring ownership of the digital design file.

In some embodiments, the digital design file may be uploaded to adecentralized file storage system, such as InterPlanetary File System(IPFS), Sia, or Arweave. The design file is given a uniquefingerprint/cryptographic hash by the decentralized file storageprotocol. The file is then stored on multiple decentralized computingnodes and servers. The cryptographic token representing ownership of thedesign file contains a reference to the unique fingerprint created byIPFS/Sia/Arweave. Ownership of the decentralized file is tiedinextricably to ownership of the cryptographic token.

In some embodiments, users are required to have their own blockchainwallet address in order to receive the digital design, represented by acryptographic token. In some embodiments, users can sign up for ablockchain wallet using a service such as, for example, MetaMask, MyEther Wallet (MEW), or Phantom. Users would then be assigned a walletaddress from a decentralized server, and when a digital asset ispurchased, the user receives the asset in their digital wallet.

In some embodiments, the compensation for creation of a digital assetand/or physical asset is dictated by smart contracts. The royalties forthe creator(s) and/or collaborator(s) for the digital and physicalasset(s) may be built into the smart contract architecture. All proceedsfrom sales of the digital asset/NFT and any related physical assetswould accrue to that NFT/smart contract, and the underlying computercode would pay the royalties according to the pre-defined proportions inthe smart contract. In some embodiments, the royalties would be paidless the cost of goods for the physical asset.

In some embodiments, each subsequent sale of the digital and/or physicalasset(s) may yield a royalty to the original creator(s) andcollaborator(s). For example, the owner of the asset would keep acertain pre-defined portion of the proceeds from the sale, and theoriginal creators would receive a pre-defined portion of the proceedsfrom the sale, divided according to the original proportions for theoriginal sale, or a new ratio specific to the resale.

In some embodiments, a collaboration may be established between acompany (e.g., Endstate) and up-and-coming designers. Under thiscollaboration—e.g., a design fellowship program—the company (e.g.,Endstate) may work with up-and-coming artists and designers to createtheir digital and physical assets. Partner designers will designsneakers or other digital and/or physical assets. The company's (e.g.,Endstate) technology will turn each asset into a digital collectible,and by virtue of being a NFT, each asset will be certified andauthenticated using the blockchain architecture. Due to theirauthenticity and scarcity, these assets will accrue value as theartist's popularity increases. This will allow and encourage consumersto speculate on up-and-coming artists. This collaboration benefitsdesigners since, for example, they get to collaborate with asneaker/design company and promote their own work, get compensated for aportion of original sales, still get to participate in the upside of anypotential future appreciate of their work, create more opportunities forup-and-coming artists to achieve career and commercial success, and getto work with/be mentored by a famous/successful designer.

In some embodiments, each digital asset has its own associated, uniquedomain name. The digital design file/associated asset and associated NFTwould own another NFT which represents ownership of a domain name. Insome embodiments, this NFT/domain name would resolve to a decentralizednaming system. In some embodiments, the domain name would resolve to awebsite that contains identifying information about the digital asset,such as a sneaker, when it was created, the designer, prior owners,prior sale prices, current sale price, the digital design file, possibledigital integrations, etc.

Advantageously, a potential buyer could visit some-shoe-001.dshoe tofind content and history around the NFT as well as potentially make anoffer to the owner. A integration partner could visitsome-shoe-001.dshoe to determine if a user in question is the owner andhas activated access before deciding to grant anything to the user.

In some embodiments, owning a digital asset/NFT entitles the user toexperiences “In Real Life” (IRL). For example, owners of a particularNFT or series of NFT may receive concert tickets, or tickets to sportingevent. In some embodiments, a particular series of digital asset/NFTwould entitle the user to unique experiences, such as backstage passesfor a concert or field passes for a sporting event. In some embodiments,these experiences would be tied to the collaborator who designed,sponsored, or otherwise inspired the creation of the digital asset/NFTor physical asset.

In some embodiments, the digital assets/NFTs will be usable in digitalenvironments, such as video games, virtual worlds, online conferencing,virtual reality, and augmented reality.

In some embodiments, users are able to authenticate the validity oftheir physical goods by using NFC chips to scan their goods. In someembodiments, users are able to authenticate the validity of theirphysical goods by using QR codes to scan their goods. Advantageously,the resulting scan will authenticate the physical goods by referencingthe corresponding digital asset in the blockchain.

In some embodiments, the upper of a sneaker may be embedded withelectrical wiring and/or fibers that are able to process an electricalsignal to create a sensible/tactile sensation on the wearer's foot.Advantageously, this would create a “haptic” response which could betied to certain actions taken by the wearer or external events happeningin the vicinity of the user, or completely remotely from the user.

In some embodiments, in order to lessen the carbon footprint, recycledmaterials may be used in the creation of physical assets, such assneakers. For example, the use of recycled materials in the soles and/oruppers by using old chopped up sneaker soles as the base material tocreate new soles, joining by melting, melding, or otherwise reformingpieces of recycled materials to one contiguous sole, using recycledyarns and threads as filament in the process of 3D printing soles and/oruppers for the sneakers, physically embedding Carbon Dioxide gas (CO2)into the sole of the sneaker by, for example, pumping CO2 into anair-tight sac in the sole of the sneaker, locking the carbon away forthe duration of the sneaker's life.

According to a first aspect, a physical asset corresponding to a digitalasset is provided. The physical asset comprises one or more componentsmanufactured in accordance with one or more parameters for customizingthe physical asset based on information associated with the digitalasset. The physical asset comprises a tag associated with the physicalasset, wherein the tag includes information comprising a uniformresource locater (URL) and encrypted information, wherein the encryptedinformation corresponds to a cryptographic token on a distributed ledgerand information about the physical asset.

In some embodiments, the tag is at least one of:

-   -   (i) a near-field communication (NFC) chip;    -   (ii) a quick response (QR) code;    -   (iii) a serial number;    -   (iv) a blockchain address; or    -   (v) a non-fungible token (NFT) public key.

In some embodiments, the physical asset is footwear including a sole andan upper, and wherein the tag associated with the physical asset isphysically linked with the physical asset by at least one of:

-   -   (i) embedding the tag in the sole;    -   (ii) embedding the tag in the upper;    -   (iii) adhering the tag on to the sole;    -   (iv) adhering the tag on to the upper; or    -   (v) adhering the tag on packaging for the footwear.

In some embodiments, the physical asset is footwear including at leastone or more of:

-   -   (i) an interchangeable sole;    -   (ii) an interchangeable upper;    -   (iii) electrical fibers capable of creating a haptic response        resulting in a sensation felt by a wearer of the footwear; and    -   (iv) electrical fibers configured to communicate with an        application.

In some embodiments, the distributed ledger is a blockchain ledger. Insome embodiments, the cryptographic token is a non-fungible token (NFT).

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are incorporated herein and form partof the specification, illustrate various embodiments.

FIG. 1 is a block diagram illustrating a method for digital assetcreation and sale according to some embodiments.

FIG. 2 is a block diagram illustrating a method for digital assetcreation according to some embodiments.

FIG. 3 is a block diagram illustrating a method for digital assetcreation according to some embodiments.

FIG. 4 is a sequence diagram illustrating a method for digital assetsale according to some embodiments.

FIG. 5 is a block diagram illustrating a method for digital asset saleaccording to some embodiments.

FIG. 6 is a block diagram illustrating a method for physical assetcreation and shipment according to some embodiments.

FIG. 7 is a block diagram illustrating a method for physical assetcreation and shipment according to some embodiments.

FIG. 8 is a block diagram illustrating a method for redeeming a digitalasset for a physical asset according to some embodiments.

FIG. 9 is a block diagram illustrating a method for redeeming a digitalasset for a physical asset according to some embodiments.

FIG. 10 is a block diagram illustrating a method for upgrading acryptographic token according to some embodiments.

FIG. 11 is a sequence diagram illustrating a method for upgrading acryptographic token according to some embodiments.

FIG. 12 is a sequence diagram illustrating a method for redeeming adigital asset for a physical asset according to some embodiments.

FIG. 13 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 14 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 15 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 16 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 17 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 18 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 19 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 20 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 21 is a screen shot illustrating an exemplary implementation of amethod for redeeming a digital asset for a physical asset according tosome embodiments.

FIG. 22 is a block diagram illustrating a method for a secondary sale ofa digital and physical asset according to some embodiments.

FIG. 23 is a sequence diagram illustrating a method for a secondary saleof a digital asset according to some embodiments.

FIG. 24 is a sequence diagram illustrating a method for a subsequentsale of a digital asset according to some embodiments.

FIG. 25 is a sequence diagram illustrating a method for generating adigital asset for purchase and integration according to someembodiments.

FIG. 26 is a sequence diagram illustrating a method for generating adigital asset for purchase and integration according to someembodiments.

FIG. 27 is a block diagram illustrating a method for generating adigital asset for purchase by a user according to some embodiments.

FIG. 28 is a block diagram illustrating a method for purchasing adigital asset in a digital environment by a user according to someembodiments.

FIG. 29 is a block diagram illustrating a method for rendering a digitalasset according to some embodiments.

FIG. 30 is a block diagram illustrating a method for authenticating aphysical asset according to some embodiments.

FIG. 31 is a sequence diagram illustrating a method for authenticating aphysical asset according to some embodiments.

FIG. 32 is a block diagram illustrating a method for authenticating aphysical asset according to some embodiments.

FIG. 33 is a block diagram illustrating a method for authenticating aphysical asset according to some embodiments.

FIG. 34 is a block diagram illustrating an architecture of acommunications system according to some embodiments.

FIG. 35 is a block diagram illustrating an apparatus according to someembodiments.

FIG. 36 is a block diagram illustrating an apparatus according to someembodiments.

FIG. 37 illustrates a physical asset according to some embodiments.

FIG. 38 illustrates a physical asset according to some embodiments.

FIG. 39 illustrates a physical asset according to some embodiments.

FIG. 40A illustrates a physical asset according to some embodiments.

FIG. 40B illustrates a physical asset according to some embodiments.

FIG. 40C illustrates a physical asset according to some embodiments.

DETAILED DESCRIPTION

FIG. 1 is a block diagram 100 illustrating a method for digital assetcreation and sale 102 according to some embodiments. Some steps ortransactions that are part of the method illustrated are performed“Off-Chain” 104 —that is, outside of a distributed ledger itself, suchas the blockchain ledger — and other steps or transactions that are partof the method illustrated are performed “On Blockchain” 106 —that is, ona distributed ledger, such as the blockchain ledger, and which may bereflected on the distributed, public ledger.

At 108, which is off-chain, a digital asset, such as a digital sneaker,is created. In some embodiments, optionally, at 110, the digital assetcreated is part of a series and serialized. In some embodiments,optionally, at 112, the digital asset is uploaded to a decentralizedfile storage system, such as InterPlanetary File System (IPFS), Sia orArweave, and given a unique digital fingerprint. For those embodiments,at 114, which is on blockchain, a series of serialized smart contractsare created.

At 116, which is on blockchain, a smart contract is initiated torepresent the digital asset, for example ERC-721 or 1155. At 118, thedigital asset and token create date is noted. In some embodiments,optionally, at 120, integrations with third party environments arenoted, for example, the digital sneaker can be used in Roblox,Decentraland, the Sims, and Fortnite. In some embodiments, optionally,at 122, third party integrations can be represented as a blockchainbased token, for example, Decentraland ERC-721, that is redeemable inthe third party environment.

At 124, which is off-chain, a user 1 purchases the digital asset. At126, which is on blockchain, transaction and owner information isappended to the smart contract by, for example, owner field updated,transaction price, and time recorded. In some embodiments, optionally,at 128, the smart contract programmatically distributes proceeds of thesale to the digital asset's creators and designers based on pre-definedinstructions. In some embodiments, optionally, at 130, the company willhold, or maintain custody of, the user's digital token in a digitalwallet owned by the company, to be retrieved at the user's request.

At 132, the user takes ownership of the digital token via ablockchain-based wallet. In some embodiments, optionally, at 134, theuser is able to redeem an additional blockchain token to receive thephysical asset (e.g., sneakers). In some embodiments, optionally, at136, the asset is sold via auction, with multiple users bidding on thesame asset.

In some embodiments, users are required to have their own blockchainwallet address in order to receive a digital asset, such as a digitalshoe design, represented by a cryptographic token. Users can, forexample, sign up for a blockchain wallet using a service, such asMetaMask, MyEtherWallet (MEW) or Phantom. Users are assigned a walletaddress from a decentralized server. When a digital asset is purchased,the user receives the asset in their digital wallet, such as theirMetaMask wallet, MEW, or Phantom wallet.

In some embodiments, an application, such as a company's softwareapplication, for example, Endstate's application, may instruct a user inhow to create a blockchain wallet using a third-party application, suchas MetaMask, and how to connect the blockchain wallet to the presentapplication, for example, Endstate's application, as follows:

-   -   (i) Download third-party wallet software;    -   (ii) install browser extension;    -   (iii) initiate/launch the browser extension once in the        application; and    -   (iv) link the wallet to the application in order to receive the        digital and/or physical asset.

In some embodiments, the application, for example Endstate'sapplication, may open a blockchain wallet on behalf of the user. Theapplication may utilize a third party application, such as MetaMask, viaan application programming interface (API) or embedded frame, allowingthe user to sign up for a third party wallet, such as a blockchainwallet, without leaving the application. In some embodiments,third-party wallet software is linked to the application without using abrowser extension. In some embodiments, the user may also enter theinformation required by the third-party wallet in order to create a newaccount and, in that case, the application may not store this data.

In some embodiments, the application, for example, Endstate'sapplication, may create a blockchain wallet on behalf of the user. Theapplication acts as a hosted wallet provider, as follows:

-   -   (i) creates user's wallet;    -   (ii) user logs into the application and uses these credentials        to access their digital wallet, such as a blockchain wallet; and    -   (iii) the application stores the user's public and private keys        to the digital (e.g., blockchain) wallet.

This type of setup allows users access to their assets without theresponsibility of full custody of their blockchain-based assets, whichare bearer instruments. This also decreases the amount offriction/onboarding time required of a new user to use the application.A third party wallet provider may be used to create these wallets or,alternatively, users' wallet addresses may be created directly on theunderlying blockchain protocol.

FIG. 2 is a block diagram illustrating a method 200 for digital assetcreation according to some embodiments. A company 202 specifiesattributes and a design for a digital asset or a series of digitalassets for a client 204. The company 202 also owns a company wallet 206,which owns a NFT template 208 (TemplateNFT) used to generate, e.g.“mint” one or more NFTs in a series. The client 204, using the template208, mints a series of NFTs 210 that are owned by the company wallet206.

FIG. 3 is a block diagram illustrating a method 300 for digital assetcreation according to some embodiments. A company 302 specifiesattributes and a design for a digital asset or a series of digitalassets, and provides those attributes and design to an applicationprogramming interface (API) 304. The API 304 is used to mint a NFT or aseries of NFTs 306 in accordance with the attributes and designs. TheNFTs 306 are stored, e.g., “owned” by a wallet 308 owned by the company302.

FIG. 4 is a sequence diagram 400 illustrating a method for digital assetsale according to some embodiments. In some embodiments, the price ofeach cryptographic token, such as a non-fungible token (NFT), and/orassociated asset may be governed by a “token bonding curve.” The priceof the token is pre-determined according to a fixed function, where theprice of the token is a function of the supply. For example, if theprice of the NFT were to follow a linear relationship (y=x), the priceof the token would match the total supply as shown in Table 1 below.

TABLE 1 Linear Token Bonding Curve Token Price Token 1 1 ETH Token 2 2ETH Token 3 3 ETH Token 4 4 ETH Token 5 5 ETH

The first token sold would cost 1 ETH, the second token sold would cost2 ETH, etc. If a new user desired the token (e.g., NFT) and/orassociated asset, the user must be willing to pay the incremental priceto have a new token (e.g., NFT) minted. If a user desired to sell thetoken (e.g., NFT), the user would move one step down the function tosell at the price one step below. This structure creates automaticliquidity and prevents rampant speculation. It helps the marketdetermine the price of the asset.

In some embodiments, the token (e.g., NFT) may be sold via auction.There are many iterations of auctions, any of which may be used. Forexample:

-   -   (i) Standard Auction: a minimum starting bid is set. Users place        escalating bids, increasing by a pre-defined minimum price        increment. Auction ends after a new high bid has not been        offered for a pre-defined period of time.    -   (ii) Dutch Auction: A starting maximum bid is set. The price        decreases in regular intervals at pre-set time intervals. For        example, the starting price is 2 ETH, and decreases by 0.01 ETH        every minute. A winning bidder places a bid to “stop” the        descent and purchases the asset at that price.

In some embodiments, the compensation for creation of the digital and/orphysical asset(s) will be dictated by smart contracts. Royalties for thecreator(s) and/or collaborator(s) for the digital and/or physicalasset(s) may be built into the smart contract architecture. All proceedsfrom sales of the digital asset/NFT and any related physical items wouldaccrue to that NFT/smart contract, and the underlying computer codewould pay the royalties according to the pre-defined proportions in thesmart contract. In some embodiments, the royalties would be paid lessthe cost of goods for the physical asset.

In some embodiments, each subsequent sale of the digital and/or physicalasset(s) may yield a royalty to the original creator(s) andcollaborator(s). For example, the owner of the asset would keep acertain pre-defined portion of the proceeds from the sale, and theoriginal creators would receive a pre-defined portion of the proceedsfrom the sale, divided according to the original proportions for theoriginal sale, or a new ratio specific to the resale.

For example, a digital and physical sneaker is designed by a thirdparty, endorsed by a third party athlete, and promoted by an additionalthird party. In this example, the profits of the shoe (sale price, lessexpenses for creating the goods) are divided in the followingproportion:

-   -   (i) 15% to designer    -   (ii) 25% to collaborating athlete    -   (iii) 10% to third party promoter    -   (iv) 50% to company

Referring now to the sequence diagram 400 of FIG. 4, a purchase withdisbursement transactions are illustrated that involve:

-   -   (i) User A 402    -   (ii) Digital Asset 404    -   (iii) Disbursement Contract 406    -   (iv) Company 408    -   (v) Designer 410    -   (vi) Collaborator 412    -   (vii) Promoter 414

At 416, the digital asset (e.g., digital/physical sneaker combination)404 is purchased by User A 402 for 1.0 ETH. When the digital asset, forexample an NFT, is purchased:

-   -   (i) at 418, 0.50 ETH would go to company 408;    -   (ii) at 420, 0.15 ETH would go to the designer 410;    -   (iii) at 422, 0.25 ETH would go to the collaborator 412, for        example, a collaborating athlete; and    -   (iv) at 424, 0.10 ETH would go to the promoter 414, for example        a third-party promoter.

Each designer, collaborator, and promoter, for example, automaticallyreceives the payment to a blockchain-based wallet that is able toreceive ETH.

FIG. 5 is a block diagram illustrating a method 500 for digital assetsale according to some embodiments. A company 502 lists one or more NFTsfor sale in a Marketplace 504 (e.g., OpenSea or another NFTmarketplace). In some embodiments, the Company's NFTs may be transferredfrom the Company's wallet 506 to the Marketplace 504 as part of thelisting. A User 508 may bid on one or more NFTs listed in theMarketplace 504. Upon successful purchase (e.g., a winning bid), theUser 508 buys the NFTs. As part of the purchase, the purchased NFTs(e.g., private keys associated with the NFTs) will be transferred to aUserWallet 510 owned by the User 508.

FIG. 6 is a block diagram 600 illustrating a method for physical assetcreation and shipment 602 according to some embodiments. Some steps ortransactions that are part of the method illustrated are performed“Off-Chain” 604—that is, outside of a distributed ledger itself, such asthe blockchain ledger—and other steps or transactions that are part ofthe method illustrated are performed “On Blockchain” 606—that is, on adistributed ledger, such as the blockchain ledger, and which may bereflected on the distributed, public ledger.

At 608, which is off-chain, production begins on a physical asset. At610, which is on blockchain, the physical asset initiation date isrecorded and timestamped in a smart contract. In some embodiments,optionally, at 612, milestones in the product's production—that is, forexample, the physical asset—are recorded and timestamped in a smartcontract.

At 614, which is off chain, the manufacturing of the physical asset, forexample, sneakers, is completed. At 616, which is on blockchain, theasset complete date is recorded and timestamped in a smart contract.

At 618, the physical asset produced is “tethered” to the digital assetusing, for example, an NFC chip or QR code embedded in or placed on thephysical asset. At 620, the physical asset, for example, sneakers, ispicked up by a logistics provider. In some embodiments, optionally, at622, a smart contract is automatically updated with shipping updatesprovided by the logistics provider. In some embodiments, optionally, at624, upon receipt of the physical asset by the user, the user scans thephysical asset to ensure authenticity.

FIG. 7 is a block diagram 700 illustrating a method for physical assetcreation and shipment according to some embodiments. A user 702transmits information to, for example, an application programminginterface (API) 704, including information identifying an NFT and theuser's shipping information. The API 704 marks the NFT as redeemed andtransmits that information to a distributed ledger, such as theblockchain ledger 706. The API 704 also associates the NFT to a UniformResource Locator (URL) and transmits that information to storage 708.The API 704 also transmits the physical specifications for the physicalasset redeemed along with an un-programmed NFC chip to manufacturing710. Manufacturing 710 will manufacture the physical product accordingto the specifications and, for the NFC chip, for example, embedding itin the physical product (e.g., in the sole of a sneaker). The completedphysical product is provided to logistics 712.

The API 704 also transmits to logistics 712 information including theNFT, shipping information, and the URL. Logistics 712 will program theNFC chip with the URL. In the final step of the process, the physicalproduct is shipped to the user 702.

For manufacturing of a physical product, in some embodiments, a shoe ofspecified size is created. During the manufacturing process, anunprogrammed NFC chip is inserted into the shoe, such as a sneaker. Oncecomplete, the sneaker is prepared for shipping. This may involveassociating the sneaker with a given individual per normal means. Atthis time, the NFC chip may also be programmed with the URL that wasgenerated for the specific user+NFT. The shoe is then shipped to theuser with the programmed chip which allows the user to scan it andvalidate the authenticity, as well as understand the relationship withthe entangled NFT. In some embodiments, the same URL could be turnedinto a QR code and attached to the product box.

As described with reference to FIG. 7, the NFC chip is programmed at theend of the manufacturing process, and this allows us to place any chipinside of any sneaker, then associate the chip with a particular NFT atthe end of the mfg/logistics process: 1) we send a list of data(shipping address, nft, url); 2) the sneaker is made with an empty chip;3) when packaged for shipping the chip is programmed with the nft, url;and 4) the unique sneaker with associated nft, url is shipped to theuser.

FIG. 8 is a block diagram illustrating a method 800 for redeeming adigital asset for a physical asset according to some embodiments. Method800 may begin with step s802.

Step s802 comprises receiving a request to redeem a physical assetcorresponding to a digital asset, wherein the redemption requestcomprises an indication of a cryptographic token on a distributed ledgercorresponding to the digital asset.

Step s804 comprises validating the redemption request. Step s806comprises updating the cryptographic token on the distributed ledger toinclude information regarding the physical asset.

In some embodiments, the method includes manufacturing the physicalasset. In some embodiments, the method includes transmitting a firstmessage comprising a prompt, wherein the prompt includes one or moreparameters to customize the physical asset, transmitting the firstmessage towards a user device, and receiving a second message comprisingone or more values for the one or more parameters for manufacturing thephysical asset according to the one or more values for the one or moreparameters.

In some embodiments, the information comprises an indication that thephysical asset has been redeemed. In some embodiments, the methodincludes generating the digital asset, wherein the digital assetcomprises one or more digital files and each of the one or more digitalfiles includes a digital representation of the digital asset, andrecording information related to the digital asset as the cryptographictoken on the distributed ledger, said information including at least afirst cryptographic hash representing the digital asset and ownershipinformation associated with the digital asset.

In some embodiments, the method includes receiving a request to purchasethe digital asset, wherein the purchase request comprises transactioninformation identifying at least the cryptographic token and a digitalwallet associated with a user, transmitting, upon validation of thepurchase request, cryptographic information to the digital walletassociated with the user, wherein the cryptographic information linksthe user with the cryptographic token, updating the digital ledger torecord the transaction, and updating the cryptographic token withinformation related to the transaction, said information including atleast new ownership information based on the transaction.

In some embodiments, the method includes storing a digital file of theone or more digital files on a decentralized file storage system, andobtaining a second cryptographic hash representing the stored digitalfile. In some embodiments, the cryptographic token further includesinformation referencing the second cryptographic hash.

In some embodiments, the method includes uploading the one or moredigital files to a remote server. In some embodiments, the cryptographictoken further includes metadata identifying a location of the one ormore digital files. In some embodiments, the digital wallet is providedby a third-party service.

In some embodiments, the digital wallet is created by the user. In someembodiments, the validation of the purchase request includes determiningthe user associated with the purchase request and determining that theuser placed a winning bid for the digital asset at an auction. In someembodiments, the method further includes updating the cryptographictoken to include information relating to one or more of a price of thedigital asset and a price of the physical asset.

In some embodiments, the method includes determining, using the pricinginformation, royalty payments reflecting predetermined ratios. In someembodiments, the digital asset is one of a limited amount of identicaldigital assets. In some embodiments, the digital asset is unique. Insome embodiments, the physical asset is one of many identical physicalassets. In some embodiments, the physical asset is one of a limitedamount of identical physical assets. In some embodiments, the physicalasset is a unique physical asset.

In some embodiments, the method further includes creating a uniquedomain name associated with the digital asset, wherein the unique domainname is recorded on the distributed ledger as a second cryptographictoken, and wherein there is an association between the firstcryptographic token and the second cryptographic token.

In some embodiments, the unique domain name resolves to a webpage thatincludes information about the digital asset. In some embodiments, thephysical asset is one or more of: footwear, apparel, equipment, an eventticket, and a functional asset. In some embodiments, the distributedledger is a blockchain ledger. In some embodiments, the digital walletis a blockchain-based wallet.

In some embodiments, the cryptographic token is a non-fungible token(NFT). In some embodiments, the cryptographic token is one or more of:an Ethereum Request for Comments (ERC) standard token or a Solana (SOL)token. In some embodiments, the cryptographic token is a governancetoken that includes the ability to vote on and/or to participate incertain actions. In some embodiments, the one or more digital filesincludes two-dimensional design files and/or three-dimensional designfiles.

Given the properties of certain 3D design files, some are static andsome are dynamic. Some 3D files may not generate the exact same hasheach time. In order to create a consistent hash for validating theauthenticity of the digital file and/or integrating the digital assetinto a digital environment (such as a video game, a virtual realityapplication, or an augmented reality application), the nature of the 3Dfile should be considered. If a 3D design file is static, then theapplication hashes the 3D file. The application checks the hash of 3Dfile before rendering in the application.

Third parties are able to integrate with the API (e.g., the EndstateAPI) to check/validate the hash before rendering the asset in theirenvironment (e.g., a Fortnite player wants to put Endstate sneakers ontheir Fortnite avatar. The player enters their token/credentials showingownership of the sneakers, and Fortnite calls our API to validate thehash).

If a 3D design file is dynamic, then the application (e.g., the Endstateapplication) hashes a 2D rendering of the 3D design file. Ourapplication hashes the 2D design file that is used to build the 3Dartifact. Each time the asset is loaded/rendered, the hash of the 2Dfile is checked against the blockchain (and/or Endstate servers), andthe 3D artifact is built using the verified 2D file. Third parties mayuse our API to validate the 2D design file. If validated, the thirdparty makes another API call to build the 3D asset based on the verified2D design file.

FIG. 9 is a block diagram illustrating a method 900 for redeeming adigital asset for a physical asset according to some embodiments. Method900 may begin with step s902.

Step s902 comprises transmitting a request to purchase a digital asset,wherein the purchase request comprises transaction informationidentifying at least a cryptographic token and a digital wallet.

Step s904 comprises receiving, in the digital wallet, informationlinking the digital wallet to the cryptographic token. Step s906comprises transmitting a request to redeem a physical assetcorresponding to the digital asset, wherein the redemption requestcomprises an indication of the cryptographic token and one or moreparameters to customize the physical asset.

In some embodiments, the method includes receiving the physical assetmanufactured in accordance with the one or more parameters. In someembodiments, the digital asset is one of a limited amount of identicaldigital assets. In some embodiments, the digital asset is unique. Insome embodiments, the physical asset is one of many identical physicalassets. In some embodiments, the physical asset is one of a limitedamount of identical physical assets. In some embodiments, the physicalasset is a unique physical asset.

In some embodiments, the physical asset is one or more of: footwear,apparel, equipment, an event ticket, and a functional asset. In someembodiments, the digital wallet is a blockchain-based wallet. In someembodiments, the cryptographic token is a non-fungible token (NFT). Insome embodiments, the cryptographic token is one or more of: an EthereumRequest for Comments (ERC) standard token or a Solana (SOL) token. Insome embodiments, the cryptographic token is a governance token thatincludes the ability to vote on and/or to participate in certainactions.

In some embodiments, the physical asset is footwear made from materialsthat reduce the carbon footprint of the footwear, including one or moreof:

-   -   (i) a sole made from recycled materials;    -   (ii) an upper made from recycled materials;    -   (iii) a sole including chopped up pieces of used soles or other        recycled materials as a base material joined by melting,        melding, or reforming the pieces into one contiguous sole;    -   (iv) a 3D printed sole made using recycled yarns and/or threads        as filament;    -   (v) a 3D printed upper made using recycled yarns and/or threads        as filament;    -   (vi) a sole with carbon dioxide gas (CO2) physically embedded        into the sole; or    -   (vii) a sole with an air-tight bladder into which carbon dioxide        gas (CO2) is pumped, thereby locking the carbon away for the        duration of the life of the footwear.

In some embodiments, the physical asset is footwear including at leastone or more of:

-   -   (i) an interchangeable sole;    -   (ii) an interchangeable upper;    -   (iii) electrical fibers capable of creating a haptic response        resulting in a sensation felt by a wearer of the footwear; and    -   (iv) electrical fibers configured to communicate with an        application.

FIG. 10 is a block diagram illustrating a method for upgrading acryptographic token according to some embodiments. In some embodiments,the user's current token (e.g., NFT) can be upgraded. In some cases theupgrade may be necessary, in order to, for example, provide additionaldata or further functionality to the asset, and in others cases it maybe optional. In some embodiments, the upgrade may be accomplished byasking the user to connect their wallet. The application (e.g., API) canidentify any NFTs that might need to be upgraded. The API may beutilized in this capacity as it can more easily maintain the list ofNFTs (possibly in a data storage sub-system). The user can then selectwhich NFT they might want to upgrade. They sign a transaction totransfer the NFT to a company (e.g., Endstate). The company can thenmint a new (upgraded) NFT and drop it to the user's wallet. The editioninformation is preserved. The original NFT is burned. A reference to theprior NFT, for historic reasons, can be captured within the new NFT.

Referring now to FIG. 10, a user 1002 provides an NFT 1004 for upgrade.The NFT 1004 is transferred to API 1006. API 1006 creates the upgradedNFT and records the information on the blockchain 1008. The API 1006burns the original NFT, and drops the upgraded NFT in, for example, adigital wallet of user 1002.

FIG. 11 is a sequence diagram 1100 illustrating a method for upgrading acryptographic token according to some embodiments.

In order for a user to redeem their NFT to claim physical goods theywould have to log in to their wallet and connect their wallet to theEndstate application potentially for the purposes of authenticatingtheir identity. This will allow the Endstate system to give the user alist of NFTs that could be redeemed. The user then selects the NFT theywant to redeem. The user is then required to enter information about thenature of the physical product they wish to redeem (e.g. shoe size), aswell as their shipping and contact information, so that a physicalproduct can be created according to their specifications and deliveredaccordingly. The Endstate system can then update the NFT as redeemed,store information about the nature of the physical item associated withthe NFT (shoe size), and store the encrypted chip data associated withthe NFT. This data is an encrypted hash of the NFT address as well asthe redemption information (shoe size) along with a salt. The encryptedvalue is appended to a URL and programmed into the NFC chip embeddedwithin the physical goods. It is possible that we would use a URLcaching system (i.e. a tiny URL) that would allow us to use smaller URLson the NFC chip. When called these URLs would redirect to the proper URLwith encryption parameters

The user is able to visit the Endstate site and authenticate theiridentity by use of their wallet. This is done by asking the user to signa randomly generated text value. They do so with their private keylocally. The signed value is submitted to the Endstate system. Thesystem can then use the user's public key to ensure that they signed thecorrect value. If so then the Endstate system will authenticate and beable trust the identity of the user. This acts as a means to log theuser into the Endstate services for non-blockchain based operations. TheAPI could go so far as to issue a JSON Web Token (JWT) to the user foruse until expired

Referring now to the sequence diagram 1100 of FIG. 11, the steps in anexemplary process for upgrading a cryptographic token, such as an NFT,are illustrated and involve:

-   -   (i) User 1102    -   (ii) Client 1104    -   (iii) API 1106    -   (iv) Company 1108

At 1110, the digital wallet of user 1102 is connected to the client1104. At 1112, the client 1104 transmits a list of NFTs to API 1106 and,at 1114, API 1106 transmits a list of NFTs that are upgradable back tothe client 1104. At 1116, the upgradable NFTs are sent from the client1104 to the user 1102. At 1118, the user 1102 makes a selection of theNFT the user wants to upgrade. At 1120, information identifying the NFTto upgrade is transmitted to the client 1104. At 1122, the client 1104sends a transfer NFT request to the user 1102 for approval. At 1124, theuser 1102 sends the approval to the client 1104 and, at 1126, the client1104 sends the user's signature and the NFT to be upgraded to thecompany 1108. At 1128, the company send the NFT to upgrade to the API1106. At 1130, the API 1106 drops the newly minted upgraded NFT in thedigital wallet of user 1102. At 1132, the company 1108 burns the now oldNFT that was upgraded.

FIG. 12 is a sequence diagram 1200 illustrating a method for redeeming adigital asset for a physical asset according to some embodiments. Insome embodiments, each digital asset has its own associated, uniquedomain name. The digital design file/associated asset and associated NFTmay own another NFT which represents ownership of a domain name. In someembodiments, this NFT/domain name resolves to a decentralized namingsystem. For example, the design file NFT smart contract would ownanother NFT representing a domain name on the Ethereum Naming System(ENS), such as endstate.eth.

In some embodiments, the design file NFT smart contract owns another NFTrepresenting a domain name on the Handshake decentralized naminginfrastructure. In some embodiments, the company (e.g., Endstate) owns anamespace/domain extension, and each design asset would have its owndomain within this namespace. For example, the company could buy and ownthe /digitalshoes namespace (dshoe).

In some embodiments, for example, each digital sneaker has acorresponding domain within the /dshoe namespace. In some embodiments,the domain names could be serial numbers. ex: 000001.dshoes. In someembodiments, the domain names could be the name of the shoe line +aunique identifier. ex: some-shoe-001.dshoes.

In some embodiments, the domain name resolves to a website that hasidentifying information about the digital sneaker, such as when it wascreated, the designer, prior owners, prior sale prices, current saleprice, the digital design file, possible digital integrations, etc. Apotential buyer could visit some-shoe-001.dshoe to find content andhistory around the NFT as well as potentially make an offer to theowner. A integration partner could visit some-shoe-001.dshoe todetermine if a user in question is the owner and has activated accessbefore deciding to grant anything to the user.

Referring now to the sequence diagram 1200 of FIG. 12, a process forredeeming a digital asset for a physical asset is illustrated thatinvolves:

-   -   (i) User A 1202    -   (ii) Client 1204    -   (iii) API 1206    -   (iv) Storage 1208    -   (v) NFC Chip 1210

At 1212, the user 1202 initiates the connection of his/her digitalwallet to client 1204. At 1214, the client 1204 sends a list ofredeemable NFTs to the user ###

FIG. 13 is a screen shot 1300 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 1300 shows the steps in the redemptionprocess 1310:

-   -   (i) Step 1: Connect your wallet—1320    -   (ii) Step 2: Upgrade your NFT to make it redeemable—1330    -   (iii) Step 3: Redeem for physical pair: set your size and tell        us your shipping address—1340.

FIG. 14 is a screen shot 1400 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 1400 shows a list of upgradeable NFTs1410. An NFT must be upgraded before it can be redeemed.

FIG. 15 is a screen shot 1500 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 1500 shows the list of upgradeable NFTs1510. The 00:PREDAWN TUNGSTEN NFT 1520 is shown as upgrading. A user'sdigital wallet 1530 shows the transaction details and prompt chosen bythe user to approve the upgrade.

FIG. 16 is a screen shot 1600 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 1600 shows a popup box 1610 indicatingthat the upgrade is in progress and that the user will see the upgradedNFT in the “REDEEM” list when the upgrade is complete.

FIG. 17 is a screen shot 1700 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 1700 shows the “REDEEM” list 1710indicating that the user can redeem the NFT for a physical pair of00:Predawn sneakers, and that the user must set his or her size andenter the shipping address.

FIG. 18 is a screen shot 1800 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 1800 shows the sizing information 1810for the company's (i.e., Endstate) sneakers, which must be selected aspart of the process of the user redeeming his or her NFT.

FIG. 19 is a screen shot 1900 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 1900 shows the size selected by theuser and prompts 1910 for the user to enter contact details and shippingaddress. After this information is entered, the user must sign andapprove the transaction in his or her digital wallet 1920.

FIG. 20 is a screen shot 2000 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 2000 shows a popup box 2010 indicating“Congratulations!” to the user and that the user's Endstate 00:Predawnsneakers have been successfully redeemed from your Drop 0 NFT.

FIG. 21 is a screen shot 2100 illustrating an exemplary implementationof a method for redeeming a digital asset for a physical asset accordingto some embodiments. Screen shot 2100 shows the user's Endstate00:Predawn Tungsten sneakers, depicted in digital form, in the user'swallet.

Each digital sneaker/asset will be part of a series. In someembodiments, each sneaker that is a part of a certain series will beidentical to each other sneaker in that series.

In other embodiments, each sneaker will have unique attributes. Theseunique attributes might be manifested through the digital asset/NFT orthe physical asset/sneakers.

Each sneaker (both physical and digital) could have its own design.

In some embodiments the digital design may be different or unique to theuser, while the physical asset is identical to the other sneakers in theseries (or vice versa).

Each sneaker could have a serial number or the blockchain address/NFTpublic key printed on the upper or sole.

Each digital design/NFT could come with its own properties. For example,each digital design/NFT may have a unique design, serial number,characteristic, and/or message.

Example 1: if the digital design/NFT is part of a sneaker serieshonoring Satoshi Nakamoto (the creator of Bitcoin), each digitalsneaker/NFT in the series could represent a different line or paragraphof the original bitcoin white paper. This way, even if the physicalsneakers are identical (or nearly identical), the corresponding digitalassets would still have their own unique properties. The particularline/paragraph of the white paper would be stored as metadata in theNFT.

Example 2: the digital design/NFT is part of a sneaker series designedby an artist, each NFT/digital asset could represent a different work ofart created by that artist. The physical sneakers may be identical ornearly identical, but the digital design files for the digital asset/NFTcould have two design files. 1. represents the physical sneaker 2.represents the unique work of art associated with that particular NFT.

Similar to the example listed above, if the collaborator is a musician,each digital sneaker/as set/NFT could be representative of a line in asong. The company (e.g., Endstate) would collaborate with the artist torelease an entirely new song via the digital assets. For example, eachdigital asset represents one line/bar in the song; the sneaker/digitalasset series is capped at the number of lines/bars in the song; usersbuying the digital assets/sneakers/NFTs would be able to listen to theirline before the full song is released; the audio file with their linewould be linked to the NFT representing the asset. the audio file may berepresented as another digital token owned by the main NFT. In someembodiments, once all of the assets in the series were sold, the fullsong would be released. In some embodiments, digital assets representinglines that were sequential in the song would be more valuable than arandom pairing of assets (or a single asset).

For example: a series of digital and/or physical assets represented byNFTs release “Hotel California” by the Eagles: Owning the assetrepresenting “You can checkout any time you like” AND “But you can neverleave!” is a valuable pairing because the lyrics appear in that order inthe song.

In some embodiments, owning a digital asset tied to a line/bar in a songwould also entitle the owner to receive partial royalties for that song.For example, when the NFT/digital asset series was designed, the artistagreed to share 10% of the song's royalties with the NFT owners. A userowns digital tokens/NFTs representing 2 bars in a song with 50 barstotal bars. The user would be entitled to 4% of the streaming royaltiesowed to the token holders, which represent 10% of the songs overallstreaming royalties.

FIG. 22 is a block diagram 2200 illustrating a method for a secondarysale 2202 of digital and physical assets according to some embodiments.Some steps or transactions that are part of the method illustrated areperformed “Off-Chain” 2204—that is, outside of a distributed ledgeritself, such as the blockchain ledger—and other steps or transactionsthat are part of the method illustrated are performed “On Blockchain”2206—that is, on a distributed ledger, such as the blockchain ledger,and which may be reflected on the distributed, public ledger.

At 2208, which is off-chain, a user 1 wishes to sell physical anddigital assets—e.g., sneakers. In some embodiments, optionally, at 2210,the user may sell only a digital asset or only a physical asset. At2212, the user lists the physical and digital assets—e.g., sneakers—forsale in a marketplace. At 2214, a user 2 purchases the physical anddigital assets—e.g., sneakers—in the marketplace.

At 2216, which is on blockchain, user 1's sneaker token—e.g., for thephysical and digital assets—e.g., sneakers—and user 2's payment areentered into a smart contract, which acts as an escrow. At 2218, whichis off-chain, user 1 ships the sneakers, and at 2220, which is onblockchain, a smart contract is automatically updated with shippingupdates provided by a logistics provider.

At 2222, which is off-chain, user 2 received the sneakers and scans theNFC chip or QR code to ensure authenticity. At 2224, which is onblockchain, upon scanning the NFC chip or QR code and an indication ofauthenticity by the application, payment is released to user 1, and thedigital asset (“tethered” to the physical asset sold—i.e., the sneakers)is released to user 2.

FIG. 23 is a sequence diagram 2300 illustrating a method for a secondarysale of a digital asset according to some embodiments. Referring now toFIGS. 23, at 2318 and 2324, User A 2302 sells the digital/physicalsneaker combination to User B 2304 for 4.0 ETH. When the NFT ispurchased:

-   -   75% (3.0 ETH) is kept by User A—2320    -   25% (1.0 ETH) divided amongst the original creators of the        assets—2322    -   0.15 ETH to designer—2328    -   0.25 ETH to collaborator—2330    -   0.1 ETH to promoter—2332    -   0.5 ETH to company—2326

This pattern would continue for each and every subsequent sale of theassets.

In some embodiments, the first owner of the asset would also participatein the upside of a resale.

Expanding on the example above, in this embodiment: The digital/physicalsneaker combination is purchased by User A for 1.0 ETH. When the NFT ispurchased, the division of the proceeds is unchanged from the aboveexample:

-   -   0.15 ETH would go to the designer    -   0.25 ETH to the collaborator    -   0.10 ETH to the promoter    -   0.50 ETH to company

However, in this embodiment when User A sells the digital/physicalsneaker combination to User B, the smart contract is updated to includeUser A as a recipient of funds for future sales (in some embodiments, itmay be necessary to “burn” the prior NFT token and mint a new token withthe new payout schema in its place). If User A sells to User B for 4.0ETH, the ratios for the division of the proceeds remain unchanged fromthe original example in the prior section:

-   -   3.0 ETH is kept by User A    -   1.0 ETH divided amongst the original creators of the assets    -   0.15 ETH to designer    -   0.25 ETH to collaborator    -   0.1 ETH to promoter    -   0.5 ETH to company

During the transaction, User A added to the smart contract libraryrepresenting the digital asset as a future beneficiary of resale (or theoriginal token is burned and a new token is minted, which includes UserA as a beneficiary of future sales) granting them 5% of future sales.

Then, were User B to sell the digital/physical asset to User C for 4.0ETH, the proceeds of the sale would be divided as follows:

-   -   (i) 75% (3.0 ETH) is kept by User B    -   (ii) 25% (1.0 ETH) divided amongst the original creators of the        assets and the original owner    -   (iii) 0.1425 ETH to designer (14.25%)    -   (iv) 0.2375 ETH to collaborator (23.75%)    -   (v) 0.095 ETH to promoter (9.5%)    -   (vi) 0.475 ETH to company (47.5%)    -   (vii) 0.05 ETH to User A (5%)

FIG. 24 is a sequence diagram illustrating a method for a subsequentsale of a digital asset according to some embodiments.

In some embodiments, each subsequent owner may be added to the list ofbeneficiaries recorded in the ledger (i.e. each prior owner in theasset's history benefits from each subsequent sale of the asset). Inother embodiments, each new owner may replace the prior owner inretaining revenue rights for prior sales. (ex: if User C were to sell toa new user D, user B would replace User A in receiving a commission). Inthis way, users would be more willing to sell the asset since doing sowouldn't prevent them from participating in the upside of future sales.

In some embodiments, the first buyer of the asset (“User A” in theexample above) would retain royalty rights in perpetuity. Subsequentusers would only benefit from the direct sale to a new user (i.e. User Bwouldn't receive royalties when User C sells to User D). In this wayusers are encouraged to be the first to own the asset, since this wouldallow them to passively profit from future sales of the asset.

In some embodiments, each collaboration with a collaborator (forexample, an artist, designer, or athlete) could be structured under anew LLC, using the “series LLC” structure. In this embodiment, therewould be a master LLC, with each new collaboration being a new LLC as asubset under the master LLC. This would allow all proceeds from salesand royalties to accrue to the same entity, and can be divided among thecollaborator and the company (e.g., Endstate).

This structure would also allow for the collaborator to take a moreactive role in the direction of the art, design, and business functionsassociated with the assets created in collaboration with the company(e.g., Endstate).

In some embodiments, the company (e.g., Endstate) will collaborate withup-and-coming designers. Under this design fellowship program, partnerdesigners will design sneakers or other digital and/or physical assets.Endstate's technology will turn each asset into a digital collectible.By virtue of being a NFT, each asset will be certified and authenticatedusing the blockchain architecture. Due to their authenticity andscarcity, these assets will accrue value as the artist's popularityincreases. This will allow and encourage consumers to speculate onup-and-coming artists. The company (e.g., Endstate) will create a designfellowship program whereby it works with up-and-coming artists anddesigners to create their digital and physical assets. There are severalbenefits for designers: (i) get to collaborate with a sneaker/designcompany and promote their own work; (ii) get compensated for a portionof original sales; (iii) still get to participate in the upside of anypotential future appreciate of their work; (iv) create moreopportunities for up-and-coming artists to achieve career and commercialsuccess; and/or (v) get to work with/be mentored by a famous/successfulfootwear designer.

In some embodiments, digital and/or physical assets are “aged” by beingheld for a certain period of time before being released. “Aged”assets/sneakers would be more valuable. For example, sneakers could beheld in any of the following vintages: 1 year, 2 years, 3 years, 5years, 10 years, 12 years, 14 year, 18 years, etc.

In some embodiments, the company may “purchase” its own unsold stock ofa certain line/series of digital and/or physical asset, “age” them, andrelease different vintages over time.

In some embodiments, users may be rewarded for “aging” the sneakers byholding them for a certain period of time.

In order to allow users to speculate on the price of the assets withouttaking physical ownership of them, the company may hold the physicalsneakers on behalf of the user. The user would receive the digital assetand be able to use it in whichever digital environments are applicable,while not worrying about damaging/losing the physical goods.

This would make trading/selling the digital asset/NFT much easier.

As shown in FIG. 24, User C 2406 purchases the digital asset from User B2404 for 4 ETH. At 2422, 3 ETH (75%) goes to User B. At 2424, 1 ETH isdistributed as follows: 47.5% or 0.475 ETH is sent to the company at2430; at 2432 14.2% or 0.1425 ETH is sent to the designer; at 243423.75% or 0.2375 ETH is sent to a collaborator; and at 2436 9.5% or0.095 ETH or sent to the promoter. At 2426, ownership of the digitalasset is transferred to User C. At 2428, 5% or 0.05 ETH is transferredto User A.

The “unredeemed” physical sneaker may be represented by a correspondingERC-20 or ERC-721 token. This token could be owned by the principaltoken NFT contract and redeemed (i.e. burned) to have the physical pairshipped to the user. In this way, there is no uncertainty as to whetheror not the physical pair of sneakers has been redeemed by the originalowner, or any subsequent owner of the asset.

In some embodiments, the NFT/digital sneaker gets separated (“severed”)from the physical sneaker. For example, a user could retain token to ownphysical sneakers while selling the digital asset/NFT and/or a usercould retain the digital asset/NFT while selling the physical good.

FIG. 25 is a sequence diagram illustrating a method for generating adigital asset for purchase and integration according to someembodiments.

In some embodiments, owning a digital asset/NFT would entitle the userto experiences “In Real Life” (IRL). For example, owners of a particularNFT or series of NFT may receive concert tickets, or tickets to sportingevent.

In some embodiments, a particular series of digital asset/NFT wouldentitle the user to unique experiences such as backstage passes for aconcert or field passes for a sporting event.

In some embodiments, these experiences would be tied to the collaboratorwho designed, sponsored, or otherwise inspired the creation of thedigital asset/NFT or physical asset.

In some embodiments, the digital assets/NFTs will be usable in digitalenvironments such as video games, virtual worlds, online conferencing,virtual reality, and augmented reality.

In some embodiments, digital token/as set/NFT represents a digitaldesign for a piece of apparel, equipment, or other functional asset.This digital design could be incorporated into existing digital/virtualenvironments. A user would “redeem” their NFT within the nativeenvironment of the virtual world/game. In some embodiments, the companywould provide the user with a design file that would properly render inthird party digital environments. Each digital environment integrationwould be represented in the digital token/asset. The NFT would contain alist of integrations for that design file, and each listed integrationwould mean the user can use/redeem their digital asset within thatenvironment.

For example: a user purchases a digital sneaker, the digital sneaker isrepresented by a non-fungible blockchain token, and this token containsa list of available integrations for the digital asset. In this example,the user is able to use the asset in Fortnite, The Sims, Decentraland,and Roblox, etc. Because of the particularities of each digitalenvironment, each digital design file would have to be unique for eachintegration. Some digital environments may share a common graphicalrendering protocol (such as Unity or Unreal Engine). Using known andcommon file formats for various environments will allow the digitalasset (sneaker, in this example) to be used in any environment wheresaid file type is supported.

For example, a file in .FBX format may be used in any digitalenvironment where .FBX files are supported to be rendered.

Such files may include metadata about where and how the file should be“rigged” or used (i.e. a sneaker is affixed to an avatar's foot).

Digital design files would be stored in a decentralized file storagenetwork such as Arweave. The digital environment would query themetadata of the NFT to locate the file in the correct format forrendering.

In some embodiments, this file format would be tagged for easyidentification by the digital environment.

In other embodiments, files would be stored on a traditional cloud-basedserver. The digital environment would then call an API to locate thefile in the correct format to be rendered in that environment. In someembodiments, each digital design file would be a “sub asset” of theprincipal NFT/blockchain based asset.

Building on the example above, there would be a sub asset/token forFortnite, The Sims, Decentraland, and Roblox. Each sub asset wouldcontain its own digital design file, designed in such a way that therespective environments would recognize the asset and be able to renderthe asset in said environment.

In some embodiments the main NFT would also “own” a physical sneaker.

In some embodiments the sub assets would not be transferrable separatelyfrom the main NFT.

In other embodiments, each sub asset would be transferrable separatefrom the main NFT.

In some embodiments, the digital assets may be combined with augmentedreality applications so that the digital assets may be “worn” by theuser when looking through the lens of a digital device capable ofaugmented reality (such as a smartphone combined with a softwareapplication). The digital asset would appear to be being worn by theuser. For example, a digital sneaker would appear to be on the user'sfoot.

In some embodiments the user may use augmented reality to “search” fordigital assets/sneakers in certain physical locations.

Users may be rewarded in tokens and/or physical assets for visitingcertain physical locations (such as a store) and/or completing taskssuch as a scavenger hunt.

In some embodiments the user may be able to redeem the tokens/and ordigital assets found or earned using augmented reality for physicalsneakers.

At 2514, the company 2510 creates a digital asset 2506, such as a shoe.At 2516, the Company registers a domain with the asset at an ENS site2508. At 2518, the ENS site references an entry corresponding to thedigital asset. At 2520, User A purchases the digital asset. At 2522,sale and ownership history is sent to the ENS site 2508.

At 2524, User A may include a purchase add on. At 2526, the Company 2510creates an integration with the Digital Asset 2506. At 2528, the DigitalAsset 2506 is integrated with the ENS site 2508.

At 2530, User B 2504 purchases the Digital asset 2506. At 2532,sale/ownership history is sent to the ENS site 2508.

At 2534, User B submits an access content request to the integrator2512. At 2536, the Integrator references the asset entry on the ENSsite. At 2538, owner/integration status is sent to the Integrator. At2540, the integrator grants User B access.

FIG. 26 is a sequence diagram illustrating a method for generating adigital asset for purchase and integration according to someembodiments.

In some embodiments, the state of the digital assets or their attributeswould change based on certain actions taken by the user. The user wouldbe able to “unlock” certain experiences or characteristics of thedigital asset based on any of the following examples:

-   -   (i) utilizing the digital asset in a video game or other virtual        environment;    -   (ii) taking certain actions within the video game, or reaching        milestones for length of time played or achievements within the        virtual environment;    -   (iii) referring other users to purchase a digital and/or        physical asset;    -   (iv) owning a certain number of digital/physical assets created        by the company; and/or    -   (v) participating in a scavenger hunt.

In some embodiments, users may accrue rewards points in the form of anERC-20 (fungible) token. In other embodiments users may accrue rewardspoints in the form of a non-fungible token or a digital token notassociated with a blockchain. Reward points may be earned for takingcertain actions on the platform; bought, sold, or traded; used to getpreference (“cut the line”) in purchasing new assets/NFTs and/orsneakers; and/or used towards purchase price for new assets/NFTs and/orsneakers.

In some embodiments, there may be a limited quantity of digitalassets/NFTs and/or physical sneakers available in a certain series. Notall users who wish to purchase the asset will be able to do so. In theseinstances, users may accrue points/tokens as a consolation for not beingselected to purchase one of the limited edition assets. These tokens maythen be used to give the user a better chance to purchase a futurelimited edition release (akin to getting another entry in a randomlottery). In some instances if the user accrues enough of theseconsolation tokens, they could redeem them to be guaranteed the right topurchase a future asset.

In some embodiments, a digital token (ERC-20 or ERC-721) may be utilizedas a “governance token”. In this embodiment ownership of the governancetoken would give the user the ability to vote on and/or participate incertain actions that take place within the company (e.g., Endstate)ecosystem. The governance token may be used to vote on whichartists/designers/athletes to collaborate with; earn rewards and/ordividends for sales of certain goods within the ecosystem; vote on thenature of rewards/dividends given to holders of the governance token;and/or receive guaranteed rights to purchase a particular asset.

At 2610, User A 2602 visits Integrator 2608. At 2612, ownership of thedigital asset is checked. At 2614 and 2616, User A proves ownership ofdigital asset 2604. At 2618, the integrator grants User A access. At2620, User A enters the integrator.

At 2622, User B 2606 visits the Integrator 2608. At 2624, the Integratorchecks ownership of the digital asset. If the User B cannot showownership proof, at 2626 the Integrator denies user B access.

FIG. 27 is a block diagram illustrating a method 2700 for generating adigital asset for purchase by a user according to some embodiments.Method 2700 may begin with step s2702.

Step s2702 comprises generating a digital asset comprising a pluralityof digital files, wherein each digital file of the plurality of digitalfiles includes a digital representation of the digital asset in arespective file format for rendering the digital asset in a respectivecomputing environment.

Step s2704 comprises recording information related to the digital assetas a cryptographic token on a decentralized distributed ledger, saidinformation including at least a cryptographic hash representing thedigital asset, ownership information associated with the digital asset,and metadata identifying the location of the plurality of digital filesassociated with the digital asset.

Step s2706 comprises receiving a request to purchase the digital assetcomprising transaction information identifying the cryptographic tokenand a digital wallet associated with the user. Step s2708 comprisestransmitting, upon validation of the request, to the digital walletassociated with the user information linking the user with thecryptographic token.

In some embodiments, the method includes storing one or more of theplurality of digital files on a decentralized file storage system, andobtaining, for each of the stored one or more digital files, a uniquecryptographic hash. In some embodiments, the cryptographic token furtherincludes information referencing the unique cryptographic hash obtained.In some embodiments, the method further includes storing one or more ofthe plurality of digital files to a remote server.

In some embodiments, at least one of the plurality of digital filesincludes information relating to at least one of compatibility or use ofthe at least one digital file in the respective computing environment.In some embodiments, the respective computing environment is an extendedreality (XR) environment including one or more of virtual reality (VR),augmented reality (AR), or mixed reality (MR) applications. In someembodiments, the respective computing environment is an augmentedreality (AR) overlay over a physical environment.

In some embodiments, the distributed ledger is a blockchain ledger. Insome embodiments, the digital wallet is a blockchain-based wallet. Insome embodiments, the cryptographic token is a non-fungible token (NFT).

FIG. 28 is a block diagram illustrating a method 2800 for purchasing adigital asset in a digital environment by a user according to someembodiments. Method 2800 may begin with step s2802.

Step s2802 comprises transmitting a first request towards a firstcomputing platform to purchase a digital asset, wherein the digitalasset is associated with a plurality of digital files and each digitalfile of the plurality of digital files includes a digital representationof the digital asset in a respective file format for rendering thedigital asset in a respective computing environment.

Step s2804 comprises receiving, in response to the first request,cryptographic information in a digital wallet associated with the user,wherein the cryptographic information links the wallet with thecryptographic token representing the digital asset, said cryptographictoken including metadata relating to a location of the plurality ofdigital files associated with the digital asset.

Step s2806 comprises generating a request to render a display of thedigital asset in the respective computing environment, wherein therequest comprises an identification of the cryptographic token. Steps2808 comprises transmitting the request towards a second computingplatform, and step s2810 comprises receiving a generated rendering ofthe digital asset in the respective computing environment.

In some embodiments, the respective computing environment is an extendedreality (XR) environment including one or more of virtual reality (VR),augmented reality (AR), or mixed reality (MR) applications. In someembodiments, the respective computing environment is an augmentedreality (AR) overlay over a physical environment. In some embodiments,at least one of the plurality of digital files includes informationrelating to at least one of compatibility or use of the digital file inthe respective computing environment.

In some embodiments, the first request is generated in response to theachievement of a gameplay milestone. In some embodiments, the digitalwallet is a blockchain-based wallet. In some embodiments, thecryptographic token is a non-fungible token (NFT).

FIG. 29 is a block diagram illustrating a method 2900 for rendering adigital asset according to some embodiments. Method 2900 may begin withstep s2902.

Step s2902 comprises receiving, at a computing platform, a requestcomprising an identification of a cryptographic token, wherein thecryptographic token represents a digital asset associated with alocation of a plurality of digital files, and each digital file of theplurality of digital files includes a digital representation of thedigital asset in a respective file format for rendering the digitalasset in a respective computing environment.

Step s2904 comprises selecting a digital file from the plurality ofdigital files based on at least one of the respective file format or therespective computing environment. Step s2906 comprises obtaining theselected digital file from the location. Step s2908 comprises generatinga rendering of the digital asset in the respective computing environmentof the computing platform based on the obtained digital file.

In some embodiments, the plurality of digital files is stored on adecentralized file system. In some embodiments, the plurality of digitalfiles is stored on a remote server. In some embodiments, the respectivecomputing environment is an extended reality (XR) environment includingone or more of virtual reality (VR), augmented reality (AR), or mixedreality (MR) applications. In some embodiments, the respective computingenvironment is an augmented reality (AR) overlay over a physicalenvironment. In some embodiments, at least one of the plurality ofdigital files includes information relating to use of the digital assetin the respective computing environment. In some embodiments, thecryptographic token is a non-fungible token (NFT).

FIG. 30 is a block diagram illustrating a method for authenticating aphysical asset according to some embodiments.

A user would be able to scan the NFC chip embedded within their physicalproduct. This would pull up the programmed URL. Visiting the site wouldallow the system to decode the content within. This would be donethrough an API for security reasons. The API would be able to return theencrypted information (e.g. NFT and shoe size). The site would then beable to use that information to assert the authenticity of the sneaker.It would be able to assert the owner as well as compare metadata on theNFT (shoe size) with that from the encoded payload.

As shown in FIG. 30, a user 3002 may use a client 3004 to scan a NFCchip. The client sends a request to an API 3006 to decode the contentsof the URL. The API 3006 looks up the NFT in a storage system 3010 basedon the contents. The client 3004 also may send one or more dataassertions to look up information on a blockchain 3008 in order toauthenticate the physical product containing the NFC.

FIG. 31 is a sequence diagram illustrating a method for authenticating aphysical asset according to some embodiments.

In some embodiments, users are able to authenticate the validity oftheir physical goods by using NFC chips to scan their goods.

In some embodiments, users are able to authenticate the validity oftheir physical goods by using QR codes to scan their goods.

In both cases, the resulting scan would authenticate the physical goodsby referencing the corresponding digital asset in the blockchain.

In some embodiments, scanning the physical good (by NFC, QR, or anyother technology) would “tether” the physical asset to the user'sdigital asset

In some embodiments, scanning the physical good would give the userownership of the asset in their wallet.

In some embodiments, once the user has scanned the goods and takenownership, they may “lock” the digital scan and/or ownership of thewallet so that the NFC/QR cannot be scanned by a random passerby on thestreet, or if the shoes are left in a gym locker, etc.

In some embodiments, scanning the NFC/QR would query the blockchainrecord for that particular physical good, and authenticate that they hadreceived the correct physical goods. The user would be authenticatedusing their public and/or private key. The digital asset that the userhad purchased would already be populated in the user's digital wallet,and querying the blockchain would ensure that the physical pair receivedwas the twin of the digital pair already owned.

In some embodiments, the company may “prime” the NFC/QR and/or the NFTto be ready to pair once it is scanned.

A user would be able to scan the NFC chip embedded within their physicalproduct. This would pull up the programmed URL. Visiting the site wouldallow the system to decode the content with. This would be done throughan API for security reasons. The API would be able to return theencrypted information (e.g. NFT and shoe size). The site would then beable to use that information to assert the authenticity of the sneaker.IT would be able to assert the owner as well compare metadata on the NFT(shoe size) with that from the encoded payload.

FIG. 31 illustrates a method 3100. At 3114, a user 3102 scans a NFC chip3104 on a physical product, such as a shoe. At 3116 the user obtains aURL with encoded information scanned from the NFC chip. At 3118, theuser is directed to an authentication site hosted by client 3106. At3120, the client sends the encoded information to an API 3110. At 3122,the API looks up the encoded information in a storage system 3112. At3124, the storage system returns a NFT token address and someinformation about the physical product, such as a shoe size. At 3126,the API sends the NFT token address and the information about thephysical product to the Client. At 3128, the Client obtains data aboutthe NFT token 3108 using the NFT token address. At 3130, informationabout the physical product is retrieved from the token, such as a shoesize. At 3132 the Client asserts that the user is the owner of the NFTtoken. At 3134, the Client compares the information about the productretrieved from the NFT and from the storage unit. At 3136, the Clientindicates that the product is authentic based on the ownershipinformation and/or the comparison.

FIG. 32 is a block diagram illustrating a method 3200 for authenticatinga physical asset according to some embodiments. Method 3200 may beginwith step s3202.

Step s3202 comprises obtaining information from a tag associated withthe physical asset, wherein the information includes a uniform resourcelocater (URL) and encrypted information, wherein the encryptedinformation corresponds to a cryptographic token on a distributed ledgerand information about the physical asset.

Step s3204 comprises transmitting a first message towards anauthentication server based on the URL, wherein the first messagecomprises the encrypted information. Step s3206 comprises receiving asecond message from the authentication server, the second messagecomprising an indication of authenticity of the physical asset.

In some embodiments, the tag associated with the physical asset is atleast one of:

-   -   (i) a near-field communication (NFC) chip;    -   (ii) a quick response (QR) code;    -   (iii) a serial number;    -   (iv) a blockchain address; or    -   (v) a non-fungible token (NFT) public key.

In some embodiments, the physical asset is footwear including a sole andan upper, and wherein the tag associated with the physical asset isphysically linked with the physical asset by at least one of:

-   -   (i) embedding the tag in the sole;    -   (ii) embedding the tag in the upper;    -   (iii) adhering the tag on to the sole;    -   (iv) adhering the tag on to the upper; or    -   (v) adhering the tag on packaging for the footwear.

In some embodiments, the distributed ledger is a blockchain ledger. Insome embodiments, the cryptographic token is a non-fungible token (NFT).

FIG. 33 is a block diagram illustrating a method 3300 for authenticatinga physical asset according to some embodiments. Method 3300 may beginwith step s3302.

Step s3302 comprises receiving a first message to authenticate thephysical asset, the first message comprising encrypted informationcorresponding to a cryptographic token on a distributed ledger and afirst set of information about the physical asset.

Step s3304 comprises obtaining the cryptographic token and the first setof information about the physical asset using the encrypted information,and step s3306 comprises retrieving, from the distributed ledger, asecond set of information about the physical asset associated with thecryptographic token.

Step s3308 comprises comparing the first set of information with thesecond set of information, and step s3310 comprises determining anauthenticity of the physical asset based on the comparison. Step s3312comprises transmitting a message comprising an indication of thedetermined authenticity of the physical asset.

In some embodiments, the method further includes determining that a useris an owner of the cryptographic token. In some embodiments, thedistributed ledger is a blockchain ledger. In some embodiments, thecryptographic token is a non-fungible token (NFT).

Referring now to FIG. 34, an exemplary architecture of a communicationsystem in accordance with some embodiments is illustrated. System 3400includes at least one remote device 3410 that is configured tocommunicate with one or more user devices 3405 through a communicationsnetwork 3404 (e.g., the internet). Examples of user devices include acomputer 3420 (e.g., laptop or desktop), a tablet 3425 (e.g., an iPad),and a mobile device 3430 (e.g., a smartphone, such as, for an example,an iPhone). An example of a remote device 3410 includes a server. Themethods and apparatus disclosed herein can, for example, be deployed asa user/client-server implementation, as a peer-to-peer implementation,as a decentralized application implementation, as a standaloneapplication running on a user device 3405, etc.

The user device 3405 can be configured to communicate with one or moreremote devices 3410 via the network 3404. Remote devices 3410 areconfigured to generate, maintain, and host computer programs thatperform the methods disclosed herein . The remote devices 3410 may, forexample, generate, maintain and host web pages (e.g., HTML documents)and other applications that embody and/or implement the methodsdisclosed herein. The remote devices 3410 include services associatedwith rendering dynamic web pages, such as data storage services,security services, etc. Accordingly, remote devices 3410 can include aconventional hardware arrangement and can be outfitted with softwareand/or firmware for performing web server functions for performing themethods disclosed herein, such as, for example, javascript/jquery,HTML5, CSS2/3, and facilities for SSL, MySQL, PHP, SOAP, etc.

Remote devices 3410 may be coupled with a data storage facility, whichmay include one or more local or remote memory systems or units, and caninclude one or more databases and/or file systems for storing data,media, graphics, HTML documents, XML documents, etc.

FIG. 35 is a block diagram of an apparatus 3500 (e.g., a network node,connected device, and the like), according to some embodiments. As shownin FIG. 35, the apparatus may comprise: processing circuitry (PC) 3502,which may include one or more processors (P) 3504 (e.g., a generalpurpose microprocessor and/or one or more other processors, such as anapplication specific integrated circuit (ASIC), field-programmable gatearrays (FPGAs), and the like); a network interface 3506 comprising atransmitter (Tx) 3508 and a receiver (Rx) 3510 for enabling theapparatus to transmit data to and receive data from other computingdevices connected to a network 3512 (e.g., an Internet Protocol (IP)network) to which network interface 3506 is connected; and a localstorage unit (a.k.a., “data storage system”) 3514, which may include oneor more non-volatile storage devices and/or one or more volatile storagedevices. In embodiments where PC 3502 includes a programmable processor,a computer program product (CPP) 3516 may be provided. CPP 3516 includesa computer readable medium (CRM) 3518 storing a computer program (CP)3520 comprising computer readable instructions (CRI) 3522. CRM 3518 maybe a non-transitory computer readable medium, such as, magnetic media(e.g., a hard disk), optical media, memory devices (e.g., random accessmemory, flash memory), and the like. In some embodiments, the CRI 3522of CP 3520 is configured such that when executed by PC 3502, the CRI3522 causes the apparatus 3500 to perform steps described herein (e.g.,steps described herein with reference to the block diagrams). In otherembodiments, the apparatus may be configured to perform steps describedherein without the need for code. That is, for example, PC 3502 mayconsist merely of one or more ASICs. Hence, the features of theembodiments described herein may be implemented in hardware and/orsoftware.

FIG. 36. is a schematic block diagram of the apparatus 3500 according tosome other embodiments. The apparatus 3500 includes one or more modules3600, each of which is implemented in software. The module(s) 3600provide the functionality of apparatus 3500 described herein (e.g.,steps described herein).

FIG. 37 illustrates a physical asset 3700 according to some embodiments.In some embodiments, a physical asset 3700 corresponds to a digitalasset. In some embodiments, the physical asset 3700 comprises one ormore components manufactured in accordance with one or more parametersfor customizing the physical asset based on information associated withthe digital asset. In some embodiments, the physical asset 3700comprises a tag associated with the physical asset, wherein the tagincludes information comprising a uniform resource locater (URL) andencrypted information, wherein the encrypted information corresponds toa cryptographic token on a distributed ledger and information about thephysical asset.

The physical asset 3700 illustrated in FIG. 37 is footwear and, moreparticularly, a sneaker.

FIG. 38 illustrates a physical asset 3800 according to some embodiments.The physical asset 3800 illustrated in FIG. 38 is footwear and, moreparticularly, a sneaker. The sneaker includes a sole 3802 and an upper3804.

In some embodiments, the sneaker 3800 includes interchangeable soles3802 and uppers 3804. The upper 3804 is able to be safely detached fromthe sole 3802 of the shoe without damaging the shoe. The upper 3804 isable to be placed on and reattached to a new sole 3802, or the sole 3802is able to be placed on and reattached to a new upper 3804. This enablesa user to customize their sneakers in many ways.

Advantageously, this interchangeability also enables users to replaceworn soles if the uppers are still intact, or replace a worn or dirtyupper if the soles are still intact. This functionality saves time,energy and materials, and has a positive impact on the environmentalfootprint of the user.

In some embodiments, in order to lessen the carbon footprint, recycledmaterials may be used in the creation of physical assets, such assneakers. For example, the use of recycled materials in the soles and/oruppers by using old chopped up sneaker soles as the base material tocreate new soles, joining by melting, melding, or otherwise reformingpieces of recycled materials to one contiguous sole, using recycledyarns and threads as filament in the process of 3D printing soles and/oruppers for the sneakers, physically embedding carbon dioxide gas (CO2)into the sole of the sneaker by, for example, pumping CO2 into anair-tight sac in the sole of the sneaker, locking the carbon away forthe duration of the sneaker's life.

FIG. 39 illustrates the sole 3900 of a physical asset according to someembodiments. Referring to FIG. 39, a sole 3900 is illustrated. In someembodiments, the sole 3900 includes a cavity or sac 3902 adapted to holda gas, for example, carbon dioxide (CO2). A cutout portion 3904 from thesole 3900 can be adhered to the sole 3900 to create an air-tight sealfor the cavity or sac 3902.

FIG. 40A illustrates a physical asset 4000 according to someembodiments. In some embodiments, as illustrated in FIG. 40A, a tag 4002may be embedded in or adhered on a sole 4004 of footwear, for example, asneaker.

In some embodiments, the tag is at least one of:

-   -   (i) a near-field communication (NFC) chip;    -   (ii) a quick response (QR) code;    -   (iii) a serial number;    -   (iv) a blockchain address; or    -   (v) a non-fungible token (NFT) public key.

In some embodiments, the physical asset is footwear including a sole andan upper, and wherein the tag associated with the physical asset isphysically linked with the physical asset by at least one of:

-   -   (i) embedding the tag in the sole;    -   (ii) embedding the tag in the upper;    -   (iii) adhering the tag on to the sole;    -   (iv) adhering the tag on to the upper; or    -   (v) adhering the tag on packaging for the footwear.

FIG. 40B illustrates a physical asset 4000 according to someembodiments. In some embodiments, as illustrated in FIG. 40B, a tag 4006may be embedded in or adhered on an interior of an upper 4008 offootwear, for example, a sneaker.

FIG. 40C illustrates a physical asset 4000 according to someembodiments. In some embodiments, as illustrated in FIG. 40C, a tag 4010may be embedded in or adhered on an exterior of an upper 4012 offootwear, for example, a sneaker.

In some embodiments, the physical asset is footwear including at leastone or more of:

-   -   (i) electrical fibers capable of creating a haptic response        resulting in a sensation felt by a wearer of the footwear; and    -   (ii) electrical fibers configured to communicate with an        application.

In some embodiments, the upper of the sneaker may be embedded withelectrical wiring and/or fibers that are able to process an electricalsignal to create a sensible/tactile sensation on the wearer's foot. Thiswould create a “haptic” response which could be tied to certain actionstaken by the wearer or external events happening in the vicinity of theuser, or completely remotely from the user.

In some embodiments, the electrical fibers may be equipped withBluetooth or other similar near-field communication technology and areable to communicate with a smartphone app connected to the internet.This allows the sneakers to receive data and respond to it via hapticresponse. For example, a haptic response could be triggered when thewearer is near someone else also wearing the company (e.g., Endstate)sneakers. Advantageously, this would create a sense of community, or ashared secret between the two wearers. It may also signal to the wearerthat there is an opportunity to trade, buy, or sell digital or physicalassets with the other party.

In some embodiments, a haptic response may be triggered to indicate thatthe user is “near” a virtual pair of sneakers that would appear inaugmented reality by using an application on a physical device such as aphone. In some embodiments, a haptic response may be triggered inassociation with an external event, such as a change in score of asporting event, a text message alert, the sale of a digital and/orphysical asset owned by the user, a change in price of a stock, acertain time of day, etc. In some embodiments, a haptic response may betriggered when the user is in danger of some sort (for instance whennear someone in a contact tracing protocol for Covid).

While various embodiments of the present disclosure are describedherein, it should be understood that they have been presented by way ofexample only, and not limitation. Thus, the breadth and scope of thepresent disclosure should not be limited by any of the above-describedexemplary embodiments. Moreover, any combination of the above-describedelements in all possible variations thereof is encompassed by thedisclosure unless otherwise indicated herein or otherwise clearlycontradicted by context.

Additionally, while the processes described above and illustrated in thedrawings are shown as a sequence of steps, this was done solely for thesake of illustration. Accordingly, it is contemplated that some stepsmay be added, some steps may be omitted, the order of the steps may bere-arranged, and some steps may be performed in parallel.

The following terminology is used in this disclosure consistent with thefollowing descriptions, which are provided as exemplary meanings and arenon-limiting. The following descriptions are not intended to, and donot, limit the meaning of these terms.

Distributed Ledger—any form of distributed database technology in whichpeer nodes work together to obtain consensus about the current state ofthe data, such as, for example, blockchain, hashgraph, etc. See, e.g.,https://en.wikipedia.org/wiki/Distributed_ledger.

Blockchain—general distributed blockchain with smart contact support,file system based blockchain—a form of distributed ledger in which theblocks of data are linked together by referencing hashes of the priorstate of data. This makes the data resistant to tampering. Someblockchains, such as Ethereum or Solana, are intended to support anecosystem of users, data and applications. Other blockchains, such asArweave or IPFS, act as a distributed file system focusing more on filedata and assets. See, e.g., https://en.wikipedia.org/wiki/Blockchain;and https://ethereum.org/en/whitepaper/.

Smart contract—program, code deployed to blockchain—a smart contract isprogram code that is deployed to and run on a supporting blockchain.This will define certain input and outputs be that in the form of dataor currency. See, e.g., https://en.wikipedia.org/wiki/Smart_contract.

Wallet—user identity, digital currency and asset holder - the wallet isthe digital identity of a user. The wallet will typically store fundsand digital assets. Any write action taken on the blockchain wouldrequire the user to sign a transaction using the public key of theirwallet. This transaction would typically incure a fee of which would beremoved from the wallet as well.

Blockchain (Generic)—Ethereum, Solana

Blockchain (File Storage)—Arweave, IPFS

Cryptocurrency—BTC, ETH, SOL, AR—the backing currency of a givenblockchain. Used to pay for services and, through fees, signtransactions and modify the blockchain.

Digital Asset—NFT, non-fungible token, token—any unit of data that canbe sold or transferred. Typically associated with images or videos.

Physical Asset—shoe, physical goods, asset

Entangled Products—digital asset+physical asset, product entanglement,asset entanglement, entangled assets—the idea of pairing a physicalasset with a digital asset on a one to one basis.

NFC—chip,—short range programmable chip capable of storing a smallamount of information. See, e.g.,https://en.wikipedia.org/wiki/Near-field_communication#Identity_and_access_tokens.

QR Code—an algorithmic image that represents a piece of data, typicallya URL. This makes it easier for a user to scan the image vs entering orremembering a url. See, e.g., https://en.wikipedia.org/wiki/QR_code.

Extended reality (XR) uses computing technology to create simulatedenvironments (a.k.a., XR environments or XR scenes). XR is an umbrellaterm encompassing virtual reality (VR) and real-and-virtual combinedrealities, such as augmented reality (AR) and mixed reality (MR).Accordingly, an XR system can provide a wide variety and vast number oflevels in the reality-virtuality continuum of the perceived environment,bringing AR, VR, MR and other types of environments (e.g., mediatedreality) under one term.

Augmented Reality (AR)

AR systems augment the real world and its physical objects by overlayingvirtual content. This virtual content is often produced digitally andincorporates sound, graphics, and video. For instance, a shopper wearingAR glasses while shopping in a supermarket might see nutritionalinformation for each object as they place the object in their shoppingcarpet. The glasses augment reality with additional information.

Virtual Reality (VR)

VR systems use digital technology to create an entirely simulatedenvironment. Unlike AR, which augments reality, VR is intended toimmerse users inside an entirely simulated experience. In a fully VRexperience, all visuals and sounds are produced digitally and does nothave any input from the user's actual physical environment. Forinstance, VR is increasingly integrated into manufacturing, wherebytrainees practice building machinery before starting on the line. A VRsystem is disclosed in US 20130117377 A1.

Mixed Reality (MR)

MR combines elements of both AR and VR. In the same vein as AR, MRenvironments overlay digital effects on top of the user's physicalenvironment. However, MR integrates additional, richer information aboutthe user's physical environment such as depth, dimensionality, andsurface textures. In MR environments, the user experience therefore moreclosely resembles the real world. To concretize this, consider two usershitting a MR tennis ball in on a real-world tennis court. MR willincorporate information about the hardness of the surface (grass versusclay), the direction and force the racket struck the ball, and theplayers' height.

XR User Device

An XR user device is an interface for the user to perceive both virtualand/or real content in the context of extended reality. An XR userdevice has one or more sensory actuators, where each sensory actuator isoperable to produce one or more sensory stimulations. An example of asensory actuator is a display that produces a visual stimulation for theuser. A display of an XR user device may be used to display both theenvironment (real or virtual) and virtual content together (e.g., videosee-through), or overlay virtual content through a semi-transparentdisplay (e.g., optical see-through). The XR user device may also haveone or more sensors for acquiring information about the user'senvironment (e.g., a camera, inertial sensors, etc.). Other examples ofa sensory actuator include a haptic feedback device, a speaker thatproduces an aural stimulation for the user, an olfactory device forproducing smells, etc.

1. A physical asset corresponding to a digital asset, the physical assetcomprising: one or more components manufactured in accordance with oneor more parameters for customizing the physical asset based oninformation associated with the digital asset; and a tag associated withthe physical asset, wherein the tag includes information comprising auniform resource locater (URL) and encrypted information, wherein theencrypted information corresponds to a cryptographic token on adistributed ledger and information about the physical asset.
 2. Thephysical asset according to claim 1, wherein the tag is at least one of:(i) a near-field communication (NFC) chip; (ii) a quick response (QR)code; (iii) a serial number; (iv) a blockchain address; or (v) anon-fungible token (NFT) public key.
 3. The physical asset according toclaim 1, wherein the physical asset is footwear including a sole and anupper, and wherein the tag associated with the physical asset isphysically linked with the physical asset by at least one of: (i)embedding the tag in the sole; (ii) embedding the tag in the upper;(iii) adhering the tag on to the sole; (iv) adhering the tag on to theupper; or (v) adhering the tag on packaging for the footwear.
 4. Thephysical asset according to claim 1, wherein the physical asset isfootwear including at least one or more of: (i) an interchangeable sole;(ii) an interchangeable upper; (iii) electrical fibers capable ofcreating a haptic response resulting in a sensation felt by a wearer ofthe footwear; and (iv) electrical fibers configured to communicate withan application.
 5. The physical asset according to claim 1, wherein thedistributed ledger is a blockchain ledger.
 6. The physical assetaccording to claim 1, wherein the cryptographic token is a non-fungibletoken (NFT).